21 June 2004, 14:59  UK house prices slip in first June week-Rightmove

British house prices slipped in the first full week of June, a report said on Monday, a possible sign that interest rate hikes from the Bank of England may have begun to dampen Britons' appetite for property. Property Website Rightmove said the average asking price for a home fell 0.4 percent to 193,965 pounds in the first full week of June ending June 12 from a peak of 194,648 pounds seen earlier in the month. The BoE raised interest rates for a fourth time since November on June 10, by a quarter point to 4.50 percent. But in the monthly period to June 12, prices rose 2.6 percent compared with the prior month and were up 17.2 percent versus year-ago levels, Rightmove said. London house prices, which tend to lead trends in the UK housing market, rose by just 0.6 percent on the month after seeing a 2.8 percent fall in the average asking price, over the last three weeks. They fell by 4,800 pounds, or 1.6 percent in the latest week surveyed alone. That came before BoE Governor Mervyn King took many by surprise last week by stirring the prospect of a possible fall in house prices. "While one week of declining asking prices does not reliably predict the future trend of prices, this may be the first factual indication that four interest rate rises are beginning to bite," the report said. The BoE has raised rates by a full percentage point since November, the latest quarter point hike coming earlier this month. Base borrowing costs are now at 4.50 percent.///

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